A quick PSE update before the market opens tomorrow!

By: Marvin Germo | June 29, 2014

Here’s a quick update on the market before it opens tomorrow! Trading stocks is just great! I hope you to have an amazing week of trading ahead! As what I always say in the our seminars or to our private clients, you should learn how to trade your plan and plan your trade! Trade with conviction that you know what you are trading to buy and sell!

May the information below help you further in your investing as you move towards financial freedom!

Price movement:

If you invested at the start of the year, your gain would be: 18%

How high has the market been swinging in the past year? 5,562.13 – 6,908.59 (1,446 range)

Stock with the most number of chart requests and questions that I have received over twitter and email (so far): Double Dragon (DD)

Technicals:

A break out of 6,910 would bring the PSEI up to 7,084.

But if the market fails to go higher it could drop to 6,640 – 6,766 as more investors are willing to buy at that price range.

Unless the market goes higher and exceeds 6,910 price range. We could expect that the market would remain sideways and still would have no direction.

On a more optimistic note, if the PSEI goes to 6,973 this bring us back to the uptrend which may very well be a pre-curser for the market to go back to 7,300 first. Then 7,400 most likely.

The market is not overbought. (at this point)

Fundamentals:

Growth drivers still remain to be in the BPO sector along with OFW remittances. No changes in this department. Our country still is poised to move and grow higher in the next few years as government spending will continue to increase and a more positive business environment would trigger more foreign direct investments to come into the country.

The latest GDP of 5.7% for the first quarter has been the lowest so far in the past 2 years. This is expected by most economists to go higher in the next quarterly reports.

Our P/E at 21+++ is relatively at the historical higher end. Which may trigger investors to wait first and come in when prices are cheaper.

We are still more expensive compared to our Asian neighbors, Singapore is just at 13,80 while both Thailand and Malaysia are ranging from 16-17. For us to be more attractive a lower P/E would be nice.